Exam (elaborations)
Life Insurance Ch. 3 - Life Policies & Life Provisions Questions and Answers
Life Insurance Ch. 3 - Life Policies & Life Provisions Questions and Answers
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Life Insurance Ch. 3 - Life Policies & LifeProvisions Questions and Answers
When a life insurance policy exceeds certain IRS table values, the result
would create which of the following?
A. 1035 Exchange
B. An investment
C. Modified Endowment Contract (MEC)
D. Endowment - -C. Modified Endowment Contract (MEC)
-What kind of life insurance product covers children under their parent's
policy?
A. Family Maintenance rider
B. Term rider
C. Family Income rider
D. Payor benefit - -B. Term Rider
-Variable Whole Life Insurance can be described as
A. both an insurance and securities product
B. an insurance product only
C. a securities product only
D. the insurance company assumes the investment risk - -A. both an
insurance and securities product
-When is the face amount paid under a Joint Life and Survivor policy?
A. when policy reaches maturation
B. upon death of the first insured
C. upon death of the last insured
D. when one of the insureds becomes disabled and no longer able to make
premium payments - -C. upon death of last insured
-K is looking to purchase Renewable Term insurance. Which of these types
of Term insurance may be renewable?.
A. Increasing
B. Decreasing
C. Adjustable
D. Level - -D. Level
-F needs life insurance that provides coverage for only a limited amount of
time with a death benefit that changes regularly according to a schedule.
What kind of policy is needed?
A. Level term policy
B. Whole life policy
C. Limited-pay policy
, D. Decreasing term policy - -D. Decreasing term policy
-What type of policy would offer a 40-year old the quickest accumulation of
cash value?
A. Paid-up at 65
B. 20-pay life
C. 30-pay life
D. Straight whole life - -B. 20-pay life
-Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices?
A. Joint Life
B. Adjustable Life
C. Variable Universal Life
D. Universal Life - -C. Variable Universal Life
-Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options?
A. Modified Whole Life
B. Variable Life
C. Universal Life
D. Adjustable Life - -B. Variable Life
-A Family Income Policy is a combination of Whole Life and
A. Decreasing Term insurance
B. Level Term insurance
C. Deposit Term insurance
D. Increasing Term insurance - -A. Decreasing Term insurance
-Life insurance that covers an insured's whole life with level premiums paid
over a limited time is called
A. Adjustable Life
B. Renewable Term
C. Limited Pay Life
D. Joint Life - -C. Limited Pay Life
-What type of life policy covers two people and pays upon the death of the
last insured?
A. Shared
B. Survivorship
C. Adjustable
D. Joint - -B. Survivorship
-What kind of life insurance starts out as temporary coverage but can be
later modified to permanent coverage without evidence of insurability?
A. Endowment policy
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